FxWirePro- EURUSD Daily Outlook

Ichimoku analysis (4-hour chart)

 Tenken-Sen- 1.06450

 Kijun-Sen- 1.05945

EURUSD is under pressure below 1.0550 on board-based US dollar buying.  The US dollar index gained momentum on hawkish Fed bets and geopolitical tension. It hits a low of 1.05329 and is currently trading around 1.05504.

 US Personal Consumption Expenditure YoY increases to 4.7% in Jan vs. forecast of 4.3%. US new home sales rose 7.2% to an annualized pace at 670000, above the estimate of 620000.

Major economic data today

US durable goods orders

 US Pending home sales

According to the CME Fed watch tool, the probability of a 50 bpbs rate hike in Mar jumped to 27.7% from 18.1% a week ago.

 The US 10-year yield recovered above 3.95% after a minor sell-off. The US 10 and 2-year spread widened to -89 basis points from -77% bpbs.

Technical:

The pair is trading below short-term 21 EMA, 55 EMA, and long-term (200-EMA) in the 4-hour chart.  Any break below 1.0530 confirms intraday bearishness; a dip to 1.0500/1.0435 is possible. The near-term resistance is around 1.0580. The breach above will push the pair to  1.0660/1.0700/1.08000/1.08850.

 Indicator (4-hour chart)

 CCI – Bearish

 Directional movement index – Neutral

It is good to sell on rallies around 1.06000 with SL around 1.0660 for a TP of 1.0480.